WFP Executive Board. 2 nd Informal Consultation Management Plan September 2016

Transcription

1 WFP Executive Board 2 nd Informal Consultation Management Plan September 2016

2 Upcoming Key dates for the Management Plan ( ) Second Informal Consultation 2 September FAO Finance 2-3 November 2016 September October ACABQ November Executive Board 24 October 15 November Present for approval the Management Plan for the Second Regular Session of the Executive Board 2 2

3 Key extracts provided in advance of today s informal consultation Management Plan ( ) Executive Summary Draft Decisions Section I: Introduction Section II: Funding Context and Resourcing Assumptions Section III: Prioritized Plan of Work Section IV: Programme Support and Administrative Budget Section V: Provision of Corporate Services and Business Services: Special Accounts Annex on Office of Evaluation Workplan Other Annexes Key Extracts Released August 19 th A complete draft of the Management Plan ( ) will be distributed by October 15 th 3 3

4 Agenda for Informal Consultation I. Directions of Change Introduced in the Management Plan ( ) II. Section-by-Section Review of the Document Section I: Introduction Section II: Funding Context and Resourcing Assumptions Section III: Prioritized Plan of Work Section IV: Programme Support and Administrative Budget Section V: Provision of Corporate Services and Business Services: Special Accounts III. Draft Decisions 4 4

5 I. Directions of Change Introduced in the Management Plan ( ) 5 5

6 Management Plan ( ) will prepare WFP for the new integrated roadmap Resource Based VfM Focused Performance Informed Standardized Resource Based Plans drafted for each project based on funding projections PSA budget focused on delivering on Board commitments budgeting process linked to the Annual Performance Report (APR) and the current Management Plan (MP) MP ( ) plans to be realigned to the new Corporate Results Framework 6 6

7 II. Section-by-Section Review of the Document 7 7

8 Section I: Introduction 8 8

9 Introduction provides a framework for understanding the drivers of the Management Plan Structure of the Document Overview of purpose and content of each section Emphasis on resource based planning as the foundation for financial planning, and the integrated road map Global Economic & Political Context Assessment of external factors that may impact WFP s work: Funding environment Climate-related change Commitments made in global summits and conferences Strategic & Organizational Context Outline of internal considerations for plans: Initiate implementation of the new roadmap, particularly the Financial Framework Analysis of global support costs Commitment to Cost Excellence primarily through process improvements Para. 6-7 Para Para

10 WFP is actively working to follow up on the World Humanitarian Summit and the Grand Bargain Working towards 47 commitments across 10 Grand Bargain workstreams Assigning ownership of commitments Looking to also establish timeframes and KPI s in partnership with others Continuing dialogue with partners Para WFP is Areas of work include: Transparency and improved data Improved partnerships with first responders Cash programming Reducing costs and measuring efficiency gains Joint assessments 10 10

11 Section II: Funding Context and Resourcing Assumptions 11 11

12 Provides the details of WFP s 2017 revenue forecast of USD 5.2B Financial Context Funding trends, funding forecast Diversify donor base and encourage multilateral/ multi-year contributions Predictable, Flexible Funding for Efficient Planning Impact of contribution restrictions on operations and advance financing Initiatives undertaken by RM & PG to support flexible funding Improved operational efficiency of multi-year and/or multilateral funding Harmonizing Cost Recovery Rates Alignment with other agencies which are harmonized Increase competitiveness Reduced transaction costs Para Para Para WFP is committed to creating a realistic plan, while advocating for needs, and emphasising the importance of flexibility and predictability 12 12

13 USD millions 2017 forecast of general trends is based on an aggregation of projections for individual projects 6000 Recent Revenue Trends and Forecasts Figure II.3 (pg.9) Forecast USA Non-Top 10 Donors Top 10 (excl. USA) Trend Forecasts * Given the current level of humanitarian needs and donor intelligence, contributions are expected to exceed USD 5 billion over the next few years *To be adjusted 13 13

14 Harmonize Private Sector ISC rate to 7% Para Harmonizing ISC rate for Private Sector to the Corporate 7% would: Make WFP more competitive in the private sector area, and align the organization with other UN agencies Reduce transaction and administrative costs 7% ISC rate for Private Sector* is already taken into account in the Corporate ISC income forecast of USD M** * Private sector also provides substantial in-kind capacity development and technical assistance ** Impact of reduction in ISC rate from 10% to 7% is USD 3 M, assuming no increase in Private Sector income as a result of lowering the ISC rate 14 14

15 Section III: Prioritized Plan of Work 15 15

16 Before, let s take a second to reflect on definitions and figures Funding Project Plan Forecast Prioritise activities and adjust requirements Resource Based Plan Operational Requirements (OR): All direct operational needs & direct costs related to approved projects and their logical extensions. Includes ISC, and excludes Trust Funds. Total: USD 9.0 B Prioritized Plan of Work (PPoW): Sets out the utilization of anticipated funding on the basis of project funding forecasts. Includes ISC, and excludes Trust Funds. Total: USD 5.4 B The Operational Requirements are needs based, while the Prioritized Plan of Work (PPoW) reflects available resources 16 16

17 PPoW forms the basis of the Management Plan and presents needs aligned to the funding forecast 1 Prioritized Plan of Work 2 Cost and Reach of Food Assistance 3 Global Analysis by Thematic Area 4 Implementation Plan Presented by : - Strategic Objective - Activity - Activity - Programme category - Programme category - Transfer type - Region Shows Impact on: - Rations - # of Beneficiaries - Duration Avg. cost of daily rations by: Progressively attempt to estimate Tier 2 beneficiaries* Overview of: Thematic areas that will shape the implementation of the Prioritized Plan Consists of: Prioritized Plan of Work All work undertaken by WFP irrespective of funding source or category Para Para Para Para. 150 Introduced in Management Plan

18 Key concept of the Management Plan is planning around resources, while advocating for needs Funding anticipated No funding anticipated Resource Based Plans: plan based on forecasted resources, for calendar year Implementation Plan, which includes Prioritized Plan of Work (Aggregation of Resource Based Project Plans) and operational Trust Funds Analysis of funding shortfalls (or Gap): effect of unfunded Operational Requirements in terms of estimated number of beneficiaries not reached, reduced beneficiary days, and reduced ration size 18 18

19 2017 From Operational Requirements to Prioritized Plan of Work (including ISC) 2a Activity Prioritization 9.0B 2b Project Foreseen Operational Requirements Adjustments of rations, beneficiaries and duration 5.4B Available Funding for Projects Funding gap Associated costs prioritization 5.4B c Prioritized Plan of Work (PPoW) Process (excl.t/f) 1. Operational Requirements: WFP establishes the Operational Requirements based on assessed needs 2a-2c. Prioritization Process: Considering available and forecasted funding, WFP goes through a prioritization process 3. PPoW: WFP reaches a Prioritized Plan 4. Funding gap: The difference between the PPoW and available resources reflected in terms of beneficiary impact 19 19

20 2017 Operational Requirements and Prioritized Plan: Key Figures USD 9.0 B Needs 88 M beneficiaries 21.5 B rations USD 5.4 B 68 M beneficiaries Prioritized Plan 16.5 B rations 20 20

21 2017 (2016) Prioritized Plan: Key Figures USD 5.4 B (USD 4.6 B ) prioritized plan 3.27 M mt (2.5 M mt )/ USD 2.8 B of food 143 Projects in 77 Countries USD 1.1 B (1.1* B cash-based transfers) 16.5 B (13.7 B) rations 68 M beneficiaries 36m W 32m M Plan is prepared within the context of assessed needs, forecasted funding, the scope of the Strategic Plan and organizational capacity * 2016 figure includes vouchers 21 21

22 Life-saving activities are the majority of the 2017 Prioritized Plan of Work Strategic Objective SO 3 accounts for USD 493 M, an increase of USD 9 M from 2016 SO3 9% SO4 9% SO 4 accounts for USD 497 M, a decrease of USD 99 M from 2016 SO 2 accounts for USD 744 M SO2 14% SO1 68% SO 1 accounts for the largest portion of the Prioritized Plan, with USD B Figure III.1 (pg.13) *Excludes trust fund projects 22 22

23 Life saving activities, within donor conditions, are prioritized < GD for L3 s is 79% and 47% for non- L3 s Table III.2 (pg.15) General distributions are the main activity in emergency settings *Excludes trust fund projects 23 23

24 Implementation plan combines the prioritized plan of work and trust funds to provide a holistic plan of field operations (including ISC) Regional bureau 2017 Implementation Plan Prioritized Trust Plan of funds Work Total Para. 150 USD Millions RBB RBC 2, ,300 RBD RBJ RBN 1, ,417 RBP Subtotal 5, ,480 Corporate trust funds By Regional Bureau related to field activity Total 5, ,502 Table III.6 (pg.26) RBN 26% RBJ 10% RBP 2% RBD 12% RBB 8% RBC 42% 24 24

25 To improve understanding of the cost of assistance, WFP is using daily rations # of Rations Billions Tracking daily rations better demonstrates the volume and frequency of assistance Prioritized Plan of Work 16.5 Average Weighted Daily Ration Cost USD Prioritized Plan of Work 0.30 Costs per ration are baselined for future comparisons Cost per food ration average: between USD 0.24 and USD 0.34 Cost per ration for general distribution is the least expensive activity, while Nutrition is the highest Para

26 WFP provides assistance to beneficiaries in a multitude of ways Para Tier 1 Approx. 68 mill. Tier 1 is direct beneficiaries of food or cash transfers Tier 2, or secondary beneficiaries of assets created by WFP Tier 2 Approx mill. Tier 3 beneficiaries are those benefitting from WFP s capacity development activities Tier 3 40% of Tier 1 direct food assistance beneficiaries are in the Syrian crisis countries, South Sudan, Yemen, Iraq and the El Niño affected countries in Southern Africa 26 26

27 Para Overview of thematic areas that will shape operations Emergency and Transition Programming Social Protection and Safety Nets Food Security and Joint Assessments Climate and Disaster Risk Reduction Market Access for Smallholder Farmers South-South &Triangular Cooperation Monitoring & Reporting 27 27

28 Selected other areas that will shape operations Accelerating Gender Mainstreaming Resources allocated to gender-related activities in PPoW are estimated at 13% Gender Policy will ensure gender equality and women s empowerment are integrated in all activities Cash Based Transfers Strengthening internal capacity and partnerships to enhance the outcomes achieved with cash based programming Nutrition Account for 10% of Prioritized Plan Other programmes being modified to enhance nutritional effects (eg. Increased dietary diversity, behavior change commitments) 28 28

29 Section IV: Programme Support & Administrative Budget 29 29

30 Key principles for Management Plan PSA planning Budget Envelope Ensure PSA budget is within our means Use PSA Budget to increase beneficiary value-transfer Maintain 7% Indirect Support Cost (ISC) rate Maintain PSAEA at minimum 5-month PSA spend level Resource Allocation Documented 5% Churn of 2016 PSA budget level Increases documented by investment cases and in line with corporate commitments, VfM and field focused Limited growth for Global HQ PSA CCIs postponed until February

31 PSA Overview: Living with our Means Para M 35.1 M 10 M Technical adjustment for centralized DSC Global HQ PSA M 2016 Approved PSA USD ISC Income 2017 PSA PSA expenditures proposed at USD M, a growth of 3.4% 31 31

32 USD 35.1 M technical adjustment will cover some of the DSC costs with ISC funding Country Office (Normal) HQ Centralized Costs Country Office (35.1 M) Costs In USD Food & Related 33 CBT 50 DSC 10 ISC 7 Total 100 Costs charged per person In USD IT 3 Security 2 Costs In USD Food & Related 38 CBT 50 DSC 5 ISC M technical adjustment Total Value Transfer USD 83 Value Transfer USD 88 The USD 35 M will help cover direct costs for programming and pass savings on to beneficiaries 32 32

33 The USD 35 M will allow WFP to improve competitiveness in the coming year Transfers value from ISC in a centralized and traceable manner Will be used to cover existing (not additional) DSC Equitably distributes extra PSA based on CO staff Improves value transfer for donors, by using ISC to cover some direct project costs With an average 2017 ration cost of USD 0.30, this proposal would represent about 117 million additional daily rations 33 33

34 WFP proposes to limit increase in regular PSA to support growth in baseline 2016 Cost Excellence savings of USD 3.8 M integrated into 2016 baseline 3.4% increase largely to augment HQ and RBx capacity USD M Within Baseline Re-programming USD 3 M from Fx gains 5% churn in all departmental budgets towards corporate priorities 2016 PSA authorization Increase in regular PSA 2017 proposed regular PSA level 34 34

35 Highlights of 5% Churn from Departmental 2017 Submissions Para , 188, Box IV.1 PG Berlin Office to be strengthened by redistributing funds within the department RM DED OED OS Shifting resources to digital transformation activities such as SCOPE, CBT and CRF, leveraging re-prioritization of budgets of the IT Division and Budget and Programming Division Staff resources shift to provide additional support to key intergovernmental processes OEV will augment support to decentralized evaluations OMS will place emphasis on the management of the project approval system to implement the new CSP process Use funds from the Chief Advisor s office to mainstream support to sustainable food systems and small holder productivity Procurement will shift from strategy and performance to strengthen work for CBT retail sector Logistics will reorganize support units to create a Logistics Field Support service and Governance Unit 35 35

36 Increases and reallocations within the regular PSA budget are based on investment cases and criteria to deliver value-for-money Increase to implement boardapproved policies Cash based transfers and SCOPE Other increases USD 6.0 million will be allocated to implement board-approved policies: USD 2.45 M: Evaluation policy implementation including $800,000 for OEV USD 0.9 M: Gender investment to ensure stronger institutional commitment and leadership for gender equality and women s empowerment programmes. USD 2.6 M: Reshaping the landscape of WFP s learning resources and mainstreaming the Career Development Centre. USD 6.1 million will be allocated towards: USD 4.1 M: Cash-based transfer support for normalizing and mainstreaming the oversight, technical support and maintenance of CBT systems, processes and tools USD 2.0 M: Support to the digital solution for beneficiary and transfer management so that solution will continue to address programmatic requirements. USD 0.94 million will be allocated towards: USD 0.44 M: Partnership Resource Centre for support of staff in maintaining effective partnerships USD 0.50 M: WFP s Emergency Operations Centre for information sharing and global coordination 36 36

37 Recommended PSA Allocations for 2017 Implementation of Board Approved Policies Proposal USD '000 Evaluation Policy Implementation 2,460 Gender Strategy 880 People Strategy 2,620 Cash Based Transfer Support 4,100 SCOPE 2,000 Other Emergency Preparedness, Partnerships 940 Total Allocations 13,000 PSA Increases focused on Executive Board Commitments 37 37

38 Analysis of Table IV.6: PSA, by appropriation line 2016 estimated 2017 movements 2017 projected Post Count Post Count Post Count Prof. Total Prof. Total Prof. Total Appropriation Lines Programme Support - RBx and COs Programme Support - HQ Management and Administration Subtotal Cost excellence re-engineering Total The cost excellence exercise will redistribute resources and shift and re-profile positions in headquarters and the field 38 38

39 A healthy 2017 year-end balance will still be maintained in the PSA Equalization Account if CCIs reach the set-aside* estimate Estimated Planning PSAEA Opening Balance (USD M) Estimated ISC Income(USD M) Regular PSA (USD M) Technical adjustment for centralised costs (USD M) 35.1 Total PSA Expenditure (USD M) Cost Excellence drawdown (USD M) Critical Corporate initiatives (USD M) 17.0 *15.0 Estimated Year end PSAEA Balance (USD M) Current PSAEA Target 5 months (USD M) Balance over 5 month target (USD M) Estimated months of PSA Reserve Estimated balance of PSA Equalization Account at end of 2017 exceeds target level agreed with the Executive Board in 2015 [WFP/EB.A/2015/6-C/1] 39 39

40 Section V: Provision of Corporate Services and Business Services: Special Accounts 40 40

41 Provision of Corporate Services and Business Services: Special Accounts Section Description Corporate Services Review of corporate services financing mechanism Corporate services envelope to remain at USD 82 million, accommodating the financing of capital improvements through the Capital Budgeting Facility Business Services Overview of largest special accounts and estimated volume of business Para

42 WFP anticipates a total volume of USD 389 million in transactions for business servicerelated special accounts Special Account Aviation Cash-based transfers UNHRD Self-Insurance Gender Description Supports WFP s ability to transport relief supplies by air when necessary Enables WFP to extend use of CBT delivery platform for benefit of humanitarian partners Services provided consist of (a) those directly related to use of the CBT delivery platforms, (e.g. assistance in performing beneficiary registration and distribution cycles) and (b) additional services, including M&E Manages donor contributions and revenue from services provided through its six-hub network UNHRDs provide standard and specific services to 75 partners Risk mitigation tool to minimize the economic effects of food losses Dedicated resources will accelerate gender mainstreaming; support implementation of the Gender Action Plan; exceed all UNSWAP requirements; implement regional gender strategies and country-level action plans; and enhance Gender Results Network 83 percent of special account activity is within Aviation, Cash-based transfers and UNHRD 42 42

43 III. Draft Decisions 43 43

44 Draft decisions relating to Operations Takes note: that the 2017 Programme Support and Administrative appropriation assumes a funding level of USD 5.2 billion in 2017; of the projected operational requirements of USD 9.0 billion for 2017 and the prioritization proposals to align this with anticipated funding, as outlined in Section III; 44 44

45 Draft decisions relating to PSA and ISC Approves: a 2017 PSA appropriation of USD million, to be allocated as follows: Programme support: RBx and CO Programme support: Headquarters Management and administration Total USD million USD 54.3 million USD million USD million A corporate indirect support cost recovery rate of 7.0 percent for 2017; 45 45

46 Other draft decisions Approves: the harmonization of indirect support cost recovery rate for Private Sector to the Corporate rate; and a ceiling of USD 82 million for corporate services advances from 2017 and looks forward to reviewing this regularly as part of future management plans

47 Thank You 47 47

48 Acronym List ACABQ: Advisory Committee on Administrative and Budgetary Matters APR: Annual Performance Report CBT: Cash Based Transfer CCI: Critical Corporate Initiatives CP: Country Plan CRF: Corporate Results Framework CSP: Country Strategic Plan DEV: Development Operations FFR: Financial Framework Review GD: General Distribution ISC: Indirect Support Costs KPI: Key Performance Indicator M&E: Monitoring & Evaluation MP: Management Plan mvam: Mobile Vulnerability Assessment Mapping OEV: Office of Evaluation OR: Operational Requirement P4P: Purchase for Progress PG: Partnerships, Governance and Advocacy Department PPoW: Prioritized Plan of Work PSA: Programme Support & Administration PSAEA: Programme Support & Administration Equalization Account RBA: Rome-based Agencies RBB: Regional Bureau, Bangkok RBC: Regional Bureau, Cairo RBD: Regional Bureau, Dakar RBJ: Regional Bureau, Johannesburg RBN: Regional Bureau, Nairobi RBP: Regional Bureau, Panama RBx: Regional Bureaux RM: PRRO: Protracted Relief and Recovery Operation SCOPE: SCOPE is WFP s beneficiary and transfer management platform SO: Strategic Objective TF (T/F): Trust Funds UNHRD: UN Humanitarian Response Depot UNSWAP: UN System-wide Action Plan [on Gender Equality and the Empowerment of Women] VfM: Value for Money WHS: World Humanitarian Summit 48 48